Dig Dug is a 1-2 player arcade game where you must use your shovel to dig through the earth. Pooka and Fygar monsters are constantly chasing you around, trying to stop you. Your only weapon is an air pump, which can be used to inflate the monsters until they explode. You can also use rocks scattered throughout the earth to squash them. If the monsters aren't found for several seconds, they will transform into ghosts that can walk through the earth and become invincible.
The gameplay involves digging through levels, avoiding Pooka and Fygar, and using your air pump or rocks to defeat enemies. Collecting vegetables in the center of each level earns points. The game requires strategy and timing to navigate through the levels without getting caught by the monsters.